New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-30
GRACE'S PERUVIAN PLANS.
wHAr THE SYNDICATE INTENDS TO DO.

safR. WINS EXPLAINS THE BIG CONCESSIONS
GRANTED BY THE GOVERNMENT.
Ex-Mayor Grace s c,pfned TO his house by illness,
End in his absence h,s partner Chamberlain WINS is
attending TO the business of the firm at No 1Ol
Pearl-et In answer to inquiries on the subject
OF formation of syndicate 20 run the railroads.
mines etc. of Peru Mr. Ivius said yesterday;
sThe arrangements have been practically com.
pleted DIR. Don Jose Aranibar Attorney-Gener
and Special Commissioner of Peru 10 now IN this city,
having recently arrived from London, where the
neg nations with the bondholders were successfully
carried out. He will sail for Peru on Saturday, and
1t only remains tor The PERI Wan Congress- when
meets IN July, to ratify the contract There IS no
doubt that this will be done. The Peruvian Trust
will then be incorporated and operations will begin.
The syndicate for this purpose has already been
formed in London, and comprises some OF the best
known fnauciers in England 1t will require al out
lay of about e. 500 900 in hve years. The obligations
assumed BY the syndioate deposit f32. 10000
OF PEI ian bonds held abroad, half OF which Will
be cancelled and from the payment OF all OF winch
the Peruvian Government will be released. But the
holders OF these bonds have claims against the
Cnilian Government which they will press hereafter
We have claim of our how In the State Depart
meat at Washington tor $l,OOO,OOO against the
Gillian Government for property OF ours which that
Government carried away bodily during the war with
Peru and thsre other large claims in this country
That however has nothing TO do with the syndicate
In addition 10 releasing the Peruvian Government
from the payment OF the bonds the Indicate agrees
to complete the railroads. TO advance ffO0O0O to the
Government In thirty months and to provide
$3.50 900 In bank capital. 1t Is to pay the Peruvian
Govern 20 per cent of the net proceeds OF the
railroad and of the guano deposits both OF which the
eradicate will operate. But the Government gets
nothing from these sources until the syndicate has
received from them f420,0O0 year. II they fail TO
prod this then f12OO0 year to be taken IRON
customs dues The concession in addition to the con-
troll the railroads. guanO deposits, certain coal
miDes the cinnabar mines, and number OF gold,
SILVER and copper mines, gives the synoicate 4,uoO-
900 acres OF land certain privileges OF immunity from
taxation, etc. The syndicate assumes the payment
and interest of the Internal debt TO the amont OF
several million dollars In return TOR the exclusive
right to issue paper money. 1T is provided however,
that there shall be reserve In specie amounting 70
one-thrd the paper issued
"Thc report about the syndicate having In view
the operation of the err0 de Pasco Mines Is not
correct The concession to operate those mines is
held by Michael p Grace who got 1t from the heirs
OF Henry Megs. That lie not art OF the agreement
with the English syndicate IL is proposed TO esao.
lish syndicate in this city to operate those mines
but the stories about the Vanderblts, Astors and
others having Joined in that undertaking are not true
Those mines very rich They are now operated
80 far as they are operated ALL In tine most print
tive way. Henry Mcigs shipped stamp mill there
but it was never put up. AS to their great value
under scientic mining there Ia question but they
are of no use to the Peruvian Government, which has
not the money to complete the railroads. nor the
money to operate the mines. Everything IN feru 10
tagnant now. The country Is Overburdened with
debt and foreign capital will go there under e1-
isting arrangements have no DOUBT that this syn
dicae besides paying the national debt will do great
things in the way of developing the country. The
,OOO 900 of land is unocouped land which is
worthless to the Government Its value depends
on what the syndicate do IN the way OF develop
ing the country"